Acquisition Cost: $5MM

Project Development Cost: $22.2MM

Project Duration: 44 Months Bank @ 100% of Acquisition (I/Y = 8.25%) 25 Years

Bank @ 30% of Development Costs for 90% of the project duration

Mezz @ 40% of Development Costs (I/Y = 14.25%) for 60% of the project duration

Preferred Equity @ 20% of Development Costs (I/Y = 19.25%) for 40% of the project duration

Common Equity @ The rest of Development Costs (I/Y = 23.0%) for 15% of the project duration

Exit Strategy: Build and Hold. Refinance terms: 100% of Total Project Cost @9.25% for 25 years.

Find: Amount borrowed from each lender/partner.

Capitalized Interest for each loan/investment

Total Project Cost (including Capitalized Interest)

Monthly Debt Service after completion/Refinance

Bonus Points: Find Effective Interest, NOI assuming 6% Cap Rate.

SHOW ALL WORK DONE BY HAND AND ANY INPUTS BY FINANCIAL CALCUALTOR DO NOT USE EXCEL OR ANY FORMULAS WITHOUT SHOWING WORK COMPLETE ALL QUESTIONS AND PUT THEM IN THEIR OWN TAB PLEASE. DO NOT ASSUME ANY OF THE NUMBERS WILL BE REMEMBERED FROM A PREVIOUS ANSWER.